BENGALURU: The state government has authorized an initial allocation of Rs 125 crore for the five newly established city corporations, which were created from the previous Bruhat Bengaluru Mahanagara Palike (BBMP). Each corporation will receive Rs 25 crore to manage daily administrative and operational costs until a direct tax remittance system is implemented.
This decision follows a proposal presented by the Chief Commissioner of the Greater Bengaluru Authority (GBA) under the Greater Bengaluru Administration Act-2024. The Act, enacted on September 2, 2025, restructured BBMP into five independent municipal corporations: Bengaluru West, Bengaluru South, Bengaluru North, Bengaluru East, and Bengaluru Central. These new entities will operate under the oversight of GBA, alongside organizations like Bengaluru Solid Waste Management Ltd. (BSWML) and Bengaluru Smart Infrastructure Ltd. (BSMILE).
The government order specifies that the grant will be sourced from property tax collections amounting to Rs 300 crore currently held in BBMP’s Union Bank account. It emphasized that this arrangement is temporary until property tax revenues can be transferred directly to the accounts of the five corporations, all of which have established their banking facilities.
Additionally, the government has set strict conditions for the use of these funds. “The Rs 25 crore now released will be accounted for in future allocations when the remaining BBMP funds are distributed among the corporations. This initial grant is intended to ensure a seamless transition and continuous operation of civic services as the five corporations start working independently,” stated GBA Chief Commissioner Maheshwar Rao.
